Why Fee Only Financial Planning?

At TBH, we strongly believe transparency and honesty are of the highest importance. Generally, most individuals are charged one of two ways by various investment firms: 

  1. Commissions on products or security trades
  2. Asset based charges, but not necessarily “fee-only”  

What does it mean to be “fee-only”? 

  1. To be “fee-only” means the firm cannot accept any compensation directly, or indirectly, outside of the client agreement. This eliminates any potential conflict of interest with advice. 
  1. A “fee-only” model creates a win-win situation for the advisor and the client.  The advisor isn’t rewarded for selling things to a customer, but rather on the long-term relationship preservation and growth over time.  
  1. It is important to note, that many large investment firms use the wording “fee-based” instead of “fee-only”.  This is a subtle but important difference.  “Fee-based” means the firm can still get kickbacks, revenue-share, and commission for sales, like insurance, annuities, etc.  All of which, are strictly prohibited in the “fee-only” space. 

At TBH, our costs are 100% transparent, and we are 100% “fee-only”. At any moment, TBH can easily give our clients a detailed breakdown of our costs. We remain committed to the belief that the industry should adopt a “fee-only” model, where advisory firms are held to the highest fiduciary standard. 

To learn more, please contact us for a complimentary consultation.

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